Dear Sir,
We have started a new business on June 12 and have approximately 85 laborers, out of which 20 are regular for production, and the remaining are for cleaning and maintenance. All the laborers are through a contractor. The factory is in Surat. The laborers are not interested in any deductions for PF and ESI and they want Rs. 300 as take-home daily wages. So far, the contractor has only paid the wages to the laborers and charged us with his commission. There has been no compliance so far. Furthermore, being a small contractor, he is not aware of all the compliance he needs to adhere to.
As the production in-charge, I am very concerned. The management has approved to cover the cost of compliance for the contractor, but both the contractor and I are unsure of how to calculate the total compliance cost, including PF, ESI, paid leave, etc. Apart from PF and ESI, there are numerous other compliances to be met, and I wonder how to quantify these into amounts.
I kindly request seniors to email me calculations considering two workers who are being paid daily wages of Rs. 300. Please also suggest the agreement format we should have with the contractor.
From India, Malappuram
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We have started a new business on June 12 and have approximately 85 laborers, out of which 20 are regular for production, and the remaining are for cleaning and maintenance. All the laborers are through a contractor. The factory is in Surat. The laborers are not interested in any deductions for PF and ESI and they want Rs. 300 as take-home daily wages. So far, the contractor has only paid the wages to the laborers and charged us with his commission. There has been no compliance so far. Furthermore, being a small contractor, he is not aware of all the compliance he needs to adhere to.
As the production in-charge, I am very concerned. The management has approved to cover the cost of compliance for the contractor, but both the contractor and I are unsure of how to calculate the total compliance cost, including PF, ESI, paid leave, etc. Apart from PF and ESI, there are numerous other compliances to be met, and I wonder how to quantify these into amounts.
I kindly request seniors to email me calculations considering two workers who are being paid daily wages of Rs. 300. Please also suggest the agreement format we should have with the contractor.
From India, Malappuram
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Dear SK,
The contract worker's lack of interest in deducting any amount towards PF, etc., is not only your problem. We faced the same issue in the past, but we found a way to address it, and it is now working smoothly.
Please provide me with the contact number, name, and email ID of the authorized person from the Surat unit.
Regards,
From India, Anand
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6The contract worker's lack of interest in deducting any amount towards PF, etc., is not only your problem. We faced the same issue in the past, but we found a way to address it, and it is now working smoothly.
Please provide me with the contact number, name, and email ID of the authorized person from the Surat unit.
Regards,
From India, Anand
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I have no organization, but I want to get a contract for less than 20 labor. I need to obtain a new PF number for the labor and an ESIC number. Do the PF Office provide me a PF number and ESIC Number? Otherwise, I need an organization. What should I do for this? Please provide me with a procedure for this.
I am located in Vadodara, Gujarat.
Thanks,
Upendra.
From India, Vadodara
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I am located in Vadodara, Gujarat.
Thanks,
Upendra.
From India, Vadodara
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Dear Mr. Sanjay,
With reference to your query on the above topic, compliance with statutory provisions is mandatory to provide PF. ESI is the responsibility of the immediate employer (Contractor). Please make an agreement with the contractor with terms and conditions clearly outlined. Otherwise, the contract labor will be deemed as employees of the principal employer, and the responsibility falls on you.
You can take action by sending your email ID and contact number to my email address: Pulipaka_ramarao@yahoo.co.in, so I can send you a copy of the agreement made with the contract labor engaged by the contractor.
For further clarifications, please feel free to contact me at 9248002899.
Thanks and Regards, P.V. Rama Rao.
From India, Chennai
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With reference to your query on the above topic, compliance with statutory provisions is mandatory to provide PF. ESI is the responsibility of the immediate employer (Contractor). Please make an agreement with the contractor with terms and conditions clearly outlined. Otherwise, the contract labor will be deemed as employees of the principal employer, and the responsibility falls on you.
You can take action by sending your email ID and contact number to my email address: Pulipaka_ramarao@yahoo.co.in, so I can send you a copy of the agreement made with the contract labor engaged by the contractor.
For further clarifications, please feel free to contact me at 9248002899.
Thanks and Regards, P.V. Rama Rao.
From India, Chennai
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Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip